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The growing dominance of large retailers has altered traditional channel incentives for manufacturers. In this paper, we present a theoretical model to illustrate a strategic manufacturer response to a dominant retailer. In our model, a dominant and a weak retailer compete for the sale of a...
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While retailers have sales data to forecast demand, manufacturers have a broad understanding of the market and the coming trends. It is well known that pooling such demand information within a distribution channel improves supply chain logistics. However, little is known about how...
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Commercial open source software (COSS) products--privately developed software based on publicly available source code--represent a rapidly growing, multibillion-dollar market. A unique aspect of competition in the COSS market is that many open source licenses require firms to make certain...
Persistent link: https://www.econbiz.de/10010990373
Better targeting opportunities and the increasing role of information-intensive environments have created new challenges for firms in obtaining customer information. Such information can help firms increase their profits through cross-selling opportunities. However, revealing personal...
Persistent link: https://www.econbiz.de/10009197325
We study the signalling strategy of a principal who is privately informed about its high demand potential to an uninformed risk-neutral agent. We analyze the model in the context of a contract between a franchisor and a franchisee. We examine the distortions of a two-part pricing scheme...
Persistent link: https://www.econbiz.de/10009197518
A low-cost incumbent may limit price to informatively signal her cost to an uncertain potential entrant, and therefore deter entry. We enrich this model by investigating the strategic pricing behavior of the incumbent when she operates in multiple markets. We demonstrate that the low-cost...
Persistent link: https://www.econbiz.de/10009203744